Free Trial

Fed Rate Path Consolidates Recent Push Higher Pre-FOMC

STIR FUTURES
  • Fed Funds implied hikes have nudged higher for today’s FOMC decision with 21bp priced (+0.5bp).
  • Beyond that only a minor easing from yesterday in broad consolidation of the push higher in 2H23 rates over the past two days after openness to increase deposits for smaller regional banks.
  • Cumulative 38bp of hikes to a peak 4.95% in May (unch) before 64bp of cuts to 4.32% at year-end (-4.5bp). The latter sits at the higher end of the wide range of 3.5-4.5% seen since CS slid last week.


FOMC-dated Fed Funds futures implied ratesSource: Bloomberg

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.